Customs Act | No Time Bar For Shipping Bill Conversion Under Section 149: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed an appeal filed by the Customs Department against ADF Foods Ltd., holding that exporters can seek conversion of shipping bills from one export incentive scheme to another even after several years, as long as the law does not prescribe any time limit. A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) upheld the earlier relief granted to the...

Service Tax | Windmill Installation, Commissioning Services Construable As 'Input Service', Credit Admissible: Gujarat High Court

The Gujarat High Court has allowed CENVAT credit of service tax paid on input used in setting up of a Windmill, away from factory premises, on the strength of nexus of the inputs with output activity, electricity generation. A Division Bench comprising, Justice Bhargav D. Karia and Justice Pranav Trivedi in twin writ petitions has set aside order of CESTAT Ahmedabad that disallowed CENVAT credit on the ground that credit of inputs and input services utilized away from the factory site...

CESTAT Delhi Cancels Customs Broker's Licence For Helping Export Prohibited Goods Using Another Person/Firm's Name

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the cancellation of a Customs Broker's licence after finding that the broker helped export prohibited goods by filing documents in the name of a firm that had never hired it. A Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Member–Technical) dismissed the appeal filed by the assessee, M/s Anax Air Services Pvt. Ltd. and confirmed the order passed by the Commissioner of Customs, New...

Service Tax | Extended Limitation Cannot Be Invoked Without Mens Rea, Deliberate Intent To Evade Duty To Be Proven: CESTAT Chandigarh

The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand of ₹18.95 crore raised against the assessee, KEC International, holding that the Department wrongly invoked the extended period of limitation without establishing any intent to evade tax . A Bench comprising Hon'ble Mr. S.S. Garg (Judicial Member) and Hon'ble Mr. P. Anjani Kumar (Technical Member) allowed the appeal filed by the assessee and quashed the...

Customs | Alleged Export Through Non-Specified Routes Must Be Proved; Presumption Insufficient To Uphold Seizure: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that seizure of goods cannot be sustained merely on the assumption that they were intended for export through non-specified routes. In the absence of any corroborative evidence establishing intent to export illegally, such presumption alone is insufficient to justify such seizure. Rajeev Tandon (Technical Member) opined that the mere presumption that the goods were meant for export to Nepal through...

Customs | Refund Cannot Be Rejected Merely For Not Filing Chartered Accountant Certificate In Prescribed Format: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a refund claim cannot be rejected solely because the Chartered Accountant certificate was not submitted in a prescribed or revised format. The bench opined that the format prescribed under the public notice is only indicative, and once the assessee has produced documents evidencing payment of VAT/CST, the refund cannot be denied merely due to a technical lapse in the format of the Chartered...

Sending Imported Goods To Job Worker For Manufacture Does Not Defeat Exemption Benefit: CESTAT Chennai Grants Relief To Godrej

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that merely sending imported goods to a job worker for manufacture does not violative exemption conditions. Since there was no allegation of the sale of goods, the exemption of benefit under Notification No. 73/2006-Cus dated 10.07.2006 cannot be denied to Godrej. Notification No. 73/2006-Cus dated 10.07.2006, provided customs duty exemption for goods imported against duty credit certificates from ...

Customs Act | Penalty U/S 112 Cannot be Imposed Solely On Co-Accused's Statement Without Corroborative Evidence: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a mere allegation by a co-accused that the assessee handed over gold cannot serve as the sole basis for imposing a penalty under Section 112 of the Customs Act. The bench clarified that in the absence of any independent corroborative evidence supporting this claim, the statement of the co-accused is not sufficient to implicate the assessee in the said offence. Section 112 of India's Customs Act,...

Customs Act | Gujarat High Court Reiterates Mandatory Cross-Examination Under Section 138B, Quashes Penalty Order

The Gujarat High Court has held that reliance on statements of witnesses without allowing the manufacturer opportunity to cross‑examine, while ignoring those statements that testified in favour of the manufacturer, violates principles of natural justice. In a judgment delivered on November 25, 2025 Justice A.S. Supehia and Justice Pranav Trivedi quashed the penalty order and culled-out 8 quintessential features of Section 138B of the Customs Act, 1962, particularly, clauses (a ) and (b)...

Service Tax | Tax Paid Under Wrong Service Category Cannot Be Demanded Again: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand raised against the assesse, holding that once service tax has already been paid under the Reverse Charge Mechanism, merely under a wrong service category, the department cannot demand the same tax again.A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) allowed the assessee's appeal and quashed the order passed by the Commissioner (Appeals), granting...

Service Tax Cannot Be Levied On Membership & Participation Fees Paid To Foreign Associations Before 01.07.2012: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that service tax cannot be levied on membership and participation fees paid to foreign associations such as International Packaging Group (IPG) or International Packaging Forum Network (IPFN) for the period prior to 01.07.2012. P. Dinesha (Judicial Member) and Vasa Seshagiri (Technical Member) stated that the demand for the period prior to 1.7.2012 on IPG/IFPN is unsustainable as there was no...

Customs | Import Duty Must Be Determined At Time Of Import, Not On Later Sale Price: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that customs duty is required to be assessed on the transaction value declared at the time of import, as reflected in the supplier's invoice. Any subsequent sale or higher remittance made after the import cannot be relied upon to reject the declared value. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the addition under the guise of short-payment of duty,...